[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Pages 37784-37785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18304]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37430; File No. SR-NYSE-96-14]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc. Relating to the Revision of the Equity Transaction Charges and the
Specialist Odd-Lot Charge
July 12, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'').\1\ notice is hereby given that on June 13, 1996 the New York
Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the self-regulatory organization. On July 9, 1996, the
Exchange submitted Amendment No. 1 to the Commission.\2\ The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ Amendment No. 1 removed the provisions in the filing that
indicated that the fee would be applied retroactively. In addition,
the NYSE stated that it will resubmit those provisions for notice
and action pursuant to Section 19(b)(2) of the Act. See letter from
James E. Buck, Senior Vice President and Secretary, NYSE, to Ivette
Lopez, Assistant Director, Division of Market Regulation, SEC, dated
July 5, 1996.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The revision to Equity Transaction Charges would eliminate the
$0.0019 per share charge for Odd-Lots (trades less than 100 shares),
except for orders of a member or member organization trading as an
agent for the account of a non-member competing market maker. In
addition, the current Specialist Odd-Lot Charge of $0.004 per share for
Odd-Lots would be reduced to $.00135 per share. The text of the
proposed rule changes is set forth below (new text is italicized;
deleted text is bracketed):
Transaction Fees
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Equity Public Agency Transaction
Equity Per Share Charge--per transaction:
System Orders from [100] 1-2,099 shares \1\ No Charge.
Floor Executed Trades and System Trades greater
than 2,099 Shares:
First 5,000 Shares......................... $0.0019.
5,001 to 710,000 Shares.................... 0.0001.
[[Page 37785]]
Subsequent Shares.......................... No Charge.
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\1\ Not inclusive of orders of a member or member organization trading
as an agent for the account of a nonmember competing market maker.
Competing Market Maker: a specialist or market-maker registered as
such on a registered stock exchange (other than the NYSE), or a market-
maker bidding and offering over-the-counter, in a New York Stock
Exchange-trade security.
* * * * *
System Processing Fees
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Specialist Odd-Lot Charge--per share:
Odd Lots................................. [$0.004] $0.00135
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Partial Round-Lots....................... ............ 0.00135
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the change is to respond to the needs of our
constituents with respect to overall competitive market conditions and
customer satisfaction.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(4) \3\ that an exchange have rules that
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members, issuers, and other persons using its
facilities.
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\3\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposed fee change does not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purpose of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments regarding the proposed rule change. The Exchange has not
received any unsolicited written comments from members or other
interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change constitutes or changes a due, fee, or
other charge imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A) of the Act \4\ and
subparagraph (e) of Rule 19b-4 thereunder.\5\
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\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4.
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At any time within sixty days of the filing of such proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying at the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing also will be available for
inspection and copying at the principal office of the NYSE. All
submissions should refer to File No. SR-NYSE-96-14 and should be
submitted by August 9, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-18304 Filed 7-18-96; 8:45 am]
BILLING CODE 8010-01-M
